Quick Ref Meteora DLMM

⚡ Five Formulas • Decision Flowchart • Mistakes to Avoid • Health Check • Tool URLs
📐

The 5 Most Important Formulas

① The Engine — Constant Product
x × y = k
x = token A in pool · y = token B in pool · k = constant
Price = y/x  ·  Buying pushes price UP, selling pushes it DOWN.
Slippage: bigger trades = bigger price impact. Ch 5
② The Hidden Cost — Impermanent Loss
IL% = 2√p/(1+p) − 1
p = price ratio (new_price ÷ entry_price)
Applies in BOTH directions. Loss is only "impermanent" until you withdraw.
Price Change1.25×1.5×2×3×5×
IL %0.6%2.0%5.7%13.4%25.5%
Ch 7
③ True LP Profit
LP Profit = Withdrawal Value − Deposit Value
The only number that matters. Not "fees look good." Not APR. Real value in, real value out.
Ch 14
④ Fee APR (Annualized)
APR = (Fees ÷ Position Value) × 365
Use daily fees for the most recent picture. Historical APR ≠ future APR.
0.1% daily ≈ 36% annual if sustained. Ch 14
⑤ The Acid Test — HODL Comparison
Win if: LP Profit > HODL Profit
HODL Profit = Value if you just held the original tokens.
If LPing underperformed holding, you paid for the education.
Compare every time you close a position. Ch 14
🧭

Strategy Decision Flowchart

Q1 Pair type?
Stable
↓ Curve / Tight
Major
↓ Spot / 20-Bin
Volatile
↓ Wide or Bid-Ask
New token
↓ Very Wide / Single
Q2 Your time?
Weekly check
→ Wide / Chill
Daily check
→ Spot
Few × / day
→ Curve, Bid-Ask
Actively monitor
→ 20-Bin, Vaults
Q3 Market view?
Range-bound
→ Spot or Curve
Going UP ↑
→ Bid-Ask (more above)
Going DOWN ↓
→ Bid-Ask (more below)
No idea...
→ Wide / Chill
🎯 Match pair type + your time + market view → pick the strategy at their intersection
Wide: low risk, low maintenance Spot: balanced, default choice Curve: max efficiency, tight range Bid-Ask: directional conviction 20-Bin: popular meta, moderate Single: automated limit orders
🚫

10 Common Mistakes to Avoid

1
Not tracking HODL comparison. "Fees look good" isn't enough — you might still be losing vs just holding.
2
Chasing extreme APR. 1000% APR usually means extreme IL is about to wreck you.
3
Skipping token vetting. Always check Rugcheck.xyz + Bubblemaps before LPing.
4
Range too narrow for volatility. Memecoins need wide ranges — tight ranges go out-of-range instantly.
5
Ignoring total fees generated. Pool with <25 SOL lifetime fees = red flag.
6
Confusing "in range" with "profitable." You can be in-range earning fees and still losing to IL.
7
Deposit and forget. LPing requires monitoring — price moves don't wait for you.
8
Starting too big. First position should be $20-50 max. Tuition, not investment.
9
Not comparing against alternatives. If fee APR <5%, a savings account may outperform with zero risk.
10
Closing without calculating. Every close = learning opportunity. Run the HODL math.
🩺

Monthly LP Health Check Checklist

① Am I tracking PnL honestly? — HODL comparison, not just fee totals
② Strategy still right for market? — Wide for trending markets wastes capital; tight for volatile ones gets rekt
③ Right monitoring frequency? — Too little = caught off-guard. Too much = overtrading.
④ Are fees worth my time? — If you spend 2 hrs/week for $3/month, reconsider
⑤ Do I understand WHY? — A profitable position you don't understand is more dangerous than a losing one you do
💡 Click each item to check it off. Print this page to use as a monthly physical checklist.
🔧

Essential Tool URLs

🌐 Meteora dApp
app.meteora.ag
Position dashboard — your source of truth
📊 Birdeye
birdeye.so
Token charts, volume, analytics
💹 DEX Screener
dexscreener.com
Real-time DEX data, trending pairs
🔄 Jupiter
jup.ag
Best swap prices, routing
🛡️ Rugcheck
rugcheck.xyz
Token safety verification
🤖 GMGN
gmgn.ai
Wallet analysis, memecoin tracking
🪖 LP Army
lparmy.com
Community Discord — active LP strategies
📚 Meteora Docs
docs.meteora.ag
Official technical documentation
🔗 Also: phantom.app (Solana wallet) · bubblemaps.io (supply concentration) · solscan.io (on-chain explorer)